ThredUp reports Q2 revenue decrease but aims for growth with focus on US market

From GlobeNewswire: 2024-08-05 16:05:00

ThredUp Inc. reported second quarter revenue of $79.8 million, a 4% decrease year-over-year, with a 70.4% gross margin and 1% increase in gross profit. Active Buyers and Orders decreased by 3% and 6% respectively. The company is evaluating strategic alternatives for its European business and provided updated guidance for Q3, Q4, and FY 2024.

ThredUp CEO James Reinhart emphasized a renewed focus despite challenges in the U.S. and Europe. The company aims to enhance the product experience through gen-AI, improve unit economics, and drive process improvements. ThredUp expects growth as a US-only business with higher gross margins, positive adjusted EBITDA, and free cash flow.

For Q3 2024, ThredUp projects consolidated revenue of $69-71 million, with U.S. revenue at $59-61 million, gross margins at 69.8-71.8%, and adjusted EBITDA margin at (6.0)% to (4.0)%. In Q4, revenue is estimated at $70-72 million, U.S. revenue at $57-59 million, gross margins at 68.8-70.8%, and adjusted EBITDA margin at (4.5)% to (2.5)%. For full year 2024, ThredUp anticipates consolidated revenue of $298-302 million, U.S. revenue at $247-251 million, gross margins at 69.6-70.6%, and adjusted EBITDA margin at (3.3)% to (2.3)%.

ThredUp launched AI-driven search features to personalize the shopping experience and released its third annual Impact Report, highlighting ESG initiatives. The company also plans to exit the European market and is exploring options for its Remix business, which generated $63.5 million in revenue in 2023. The ThredUp conference call and webcast are available on their investor relations website.



Read more at GlobeNewswire:: ThredUp Announces Second Quarter 2024 Results